The Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS) has published a letter to the European Commission which contains an analysis of three different proposals for the definition of cross-border services under the Insurance Mediation Directive (IMD).

The analysis presents the different options examined by the members of CEIOPS’ Intermediaries Expert Group. The first two approaches represent the options put forward by the Commission. The third proposal was the result of a discussion on the other two proposals and was put forward by the Intermediaries Expert Group.

The different proposals for a definition are:

Residence of policyholder - where an insurance intermediary is carrying out business under freedom of services (FOS) but that the Member State in which it is established is different from the Member State of the recipient of its services (i.e. consumers/policyholders).

Situation of the risk - where an insurance intermediary carries on business under FOS and the intermediary is not established in the Member State where the risk to be underwritten is located.

Definition - where an intermediary is operating under FOS when it intends to supply a policyholder, established in a Member State other than the one where the intermediary is established, with an insurance contract relating to a risk in another state to the intermediary’s home state. The intention to supply will be evidenced by its formal notification to operate under FOS in another Member State. In the absence of a formal notification the intention can be imputed to the intermediary if it is actively seeking business or marketing its services in that Member State.

CEIOPS favours the third proposal.

For further information: The letter to the European Commission CEIOPS proposals for defining freedom of services (86KB) (.pdf)